Worcester council considers tax incentive for buying local

Think about ordering a meal at your favorite eatery on Shrewsbury Street or the Canal District and having part of your purchase used to pay off your property tax bill.

It could very well happen.

The City Council last night asked the city administration to consider establishing a tax incentive program, which would provide property owners with a real estate credit when they purchase goods or services from a participating business in the city.

The proposal is modeled on one successfully implemented last year in the town of Marlboro, located in Monmouth County, New Jersey.

Councilor at-Large Frederick C. Rushton, who would like the plan implemented in Worcester, said Marlboro officials spent about two years studying the program before starting it.

To lure customers into their shops, participating business owners would offer special credit on certain items or services.

The customer would pay the full price but the credited portion of the bill would be paid by the business and given to the city to be taken off the patron's property tax bill.

Residents who would be interested in participating could pay in cash or use special swipe cards sponsored by a local bank or other institutions.

“It keeps local dollars local,” Mr. Rushton said.

He said the program would help grow local businesses while providing a bit of financial benefit to the resident shopper.

He said he's already talked to a couple of financial institutions, who expressed interest in sponsoring cards in Worcester.

Mr. Rushton's council order was supported by Mayor Joseph M. Petty and Councilors Michael J. Germain, Joseph C. O'Brien, and George J. Russell.

Mr. Rushton said other Garden State communities are looking to follow Marlboro's lead.

He said about 40 businesses are already participating in Marlboro, a town of about 40,000.

Councilor at-Large Konstantina B. Lukes said she had some concerns about the program, including the question of what city agency or department would provide oversight. She also wondered whether the program might force the city to hire more employees.

Mr. Rushton said he was willing to set up a conference call with the mayor in Marlboro so local officials could learn more.

"The city loses nothing and the citizen gains," Mr. Rushton said. This paragraph has been changed. Mr. Rushton was initially misquoted.

Officials said there is no charge for the cards in Marlboro and the balance can be checked online.

Investors Bank picked up the cost for the initial batch of “Shop Marlboro” cards and each business decides how much of a percentage of credit it will pick up.

Returns are subject to the normal policies of the businesses, with tax credits reversed for refunded transactions.

Meanwhile, coupon use is dependent on the policy of the participating business.

The program was the brainchild of Mayor Jon Hornik.

“You and your family will benefit from the program because a portion of your normal purchasing dollars spent annually on goods and services in Marlboro will be applied against your property tax bill, thereby reducing your tax liability at the end of the year,” said Mr. Hornik, in a letter sent to residents when the program was launched.

“Our town's businesses will benefit because they will see a significant uptick in the revenues generated by their establishment. Indeed, this is a win-win situation for all.”